Toyota sure cares about the American people!

[moparstuart]

People must be proud to drive these cars -

Toyota to hand off pension bill to U.S.

BY GREG GARDNER
FREE PRESS BUSINESS WRITER

Toyota is leaving a $131-million pension shortfall to the Pension Benefit Guaranty Corp. as it closes the New United Motor Manufacturing Inc. plant in Fremont, Calif., April 1, said Sergio Santos, president of UAW Local 2244.
But the PBGC, a federal corporation charged with protecting pension benefits of 44 million Americans, wants to discuss ways Toyota can reduce the gap.

The agency has taken legal action to gain control of the NUMMI pension plan. PBGC spokesman Gary Pastorius said the agency wants to talk to Toyota about alternatives to a takeover, "but it just hasn't
happened yet. We still have questions."
NUMMI said it had met its obligations regarding the plan when the PBGC began court action, according to a memo issued by Tracy Wakefield, a human resources manager.

Toyota operated NUMMI jointly with General Motors from 1983 until GM's withdrawal last summer.
Santos said NUMMI and Toyota imposed a "gag order that I believe violates our First Amendment rights," preventing workers from commenting on the plant closure.
NUMMI spokesman Lance Tomasu said the union voluntarily pledged not to denigrate NUMMI or Toyota as part of the shutdown agreement.

In recent days, Toyota sweetened the severance offer from $253 million to $281 million for the about 4,500 NUMMI workers, Santos said. Each hourly
worker will receive a base severance of $21,175, plus supplements that vary based on years of service, the union president said.

On March 3, the PBGC said it would cover $126 million of a $131-million underfunding in the pension covering NUMMI's UAW workers. The agency said $5 million of supplemental benefits are not insured.
Harley Shaiken, a University of California Berkeley professor and labor relations expert, said the pension shortfall adds to Toyota's public relations challenges.

"For the world's most profitable automaker to walk away from a pension covering people who, in some cases, worked for more than a quarter of a century doesn't look good," Shaiken said. "Especially in the wake of Toyota's recent recalls."

[PocketThunder]

Does a Pension ever work like its supposed to?  Seems like every Pension is short on money when the retired come to collect.

[moparstuart]

Does a Pension ever work like its supposed to?  Seems like every Pension is short on money when the retired come to collect.

seems that way in our recent life time

[stripedelete]

pretty sure we did the same thing for GM and Chyrsler about a year ago..........it just had a little different spin....

welcome to socialism........

[Rolling_Thunder]

pretty sure we did the same thing for GM and Chyrsler about a year ago..........it just had a little different spin....

welcome to socialism........

Yep -  now that GM is owned (~60%) by the government I wouldn't put too much stock in what you hear about the news about a foreign auto manufacturer

[maxwellwedge]

This from the net...

GM is also struggling with its pension obligations; a large portion of GM's loss was due to a settlement with the United Workers Automobile Workers union over retiree health care liabilities. 

According to a report by the Government Accountability Office, GM will need to add $12.3 billion into its pension fund by 2014.  If GM and Chrysler (which is in the hole $2.6 billion) terminate their pensions, the Pension Benefit Guaranty Corporation – funded by, you know who - would then become responsible for as much as $14.5 billion in unfunded liabilities. However, if GM starts making money the company will be able to pay into the pension, the GAO reports.

Underfunded pensions are a widespread problem, not just for the private sector, as Henry and Aaron discuss in the accompanying clip. 

The New York Times reports, an independent report of California's three big pension funds found a shortfall of more than half a trillion dollars. This could lead to a major political problems, especially when and if states raise taxes to bridge the gap.  As Aaron points out, this could enrage taxpayers fed up with paying for government worker benefits at a time when the average government employee is making more than private sector workers and receives better benefits.

[68blue]

Always used to be envious of those guys working at companys with good pensions. I would never have dreamed that so many of them would go bad.

[Brock Samson]

i think it's just simple math, less workers paying into pensions that are depleted by more and more older pensioners and add to that far more expensive healthcare costs.
Mine is in trouble too... I hope it's even partially solvent when i'm eligable in a few years..
oh, 'n lettuce not even get into Social Security...